The Economic Times daily newspaper is available online now.

    Top stock picks for Samvat 2079

    Synopsis

    ​​With heightened geopolitical concerns, elevated inflation, and continued rate tightening by central banks keeping investors on the edge, a broad-based bull run in the new Samvat seems unlikely. ​But analysts said some stocks could still emerge as winners.

    top stock picksShutterstock.com
    NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book, and strong presence in B-30 cities augments growth prospects well.
    Samvat 2079 — the Hindu new year starting on October 24 — could be a test of nerves as investors brace for more uncertainty with the likelihood of a recession in the West looming over markets.

    With heightened geopolitical concerns, elevated inflation, and continued rate tightening by central banks keeping investors on the edge, a broad-based bull run in the new Samvat seems unlikely. But analysts said some stocks could still emerge as winners.

    ET has compiled a list of 30 such stocks — 10 each from large-cap, mid-cap, and small-cap segments — recommended by the 10 leading brokerages.

    AXIS SECURITIES

    ITC
    LTP: Rs 346 | Target: Rs 380
    The recovery in the cigarette business and uptick in agri, hotels, and paperboard in the near term makes ITC a better play in the entire FMCG pack where valuations are high

    IDFC First Bank
    LTP: Rs 57 | Target: Rs 70
    The stock is poised for a re-rating, given the continuous improvement in the bank’s asset quality and its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25.

    Westlife Development
    LTP: Rs 763 | Target: Rs 870
    Large headroom for expansion, as the company plans to open over 200 stores in the next 3-4 years, implying an additional 40-50 stores annually.

    CENTRUM BROKING

    Sun Pharma
    LTP: Rs 977 | Target: Rs 1,130
    The company delivered improved earnings growth led by continued profitable growth in the speciality portfolio, sustained strong performance in domestic formulations, and steady growth from global markets.

    Triveni Turbine
    LTP: Rs 269 | Target: Rs 315
    Technology-driven customised products, significant exports, and after-market services are key strengths. An upsurge in order inflow led by a revival in industrial capex will act as a key growth catalyst.

    La Opala
    LTP: Rs 400 | Target: Rs 442
    Last quarter, La Opala expanded its capacity by 45% to 36,000 tonnes. The management has also indicated to expand into the Borosil glass category, for which it intends to spend Rs 70 crore over the next oneand-a-half years.

    HDFC SECURITIES

    ICICI Bank
    LTP: Rs 893 | Target: Rs 999
    De-risking its loan book by reducing its corporate portfolio and focusing on high margin-less risky retail segment in times of credit growth pick-up in the system, building a resilient balance sheet and more stringent underwriting practices remain the key positives.

    Bharat Electronics
    LTP: Rs 106 | Target: Rs 123
    Large order backlog of Rs 55,333 crore, easing chip supply situation, thrust on Aatmanirbhar in defence production,
    and diversifying into non-defence business — all provide healthy revenue and margin visibility.

    Deepak Fertilisers and Petrochemicals
    LTP: Rs 988 | Target: Rs 1,058
    Growth could be driven by a change in product mix, availability of additional capacities, strong growth prospects in the technical ammonium nitrate business, high regulatory entry barriers, improving capacity utilisation, favourable chemical cycle, and a strong uptick in return ratios.


    ICICI SECURITIES

    Axis Bank
    LTP: Rs 831 | Target: Rs 970
    With strong capitalisation levels at about 17.8%, Axis Bank is poised to pedal higher business growth. The
    firm expects Axis to deliver a return on assets of 1.5% and return on equity of 15% over FY22-24.

    Apollo Tyres
    LTP: Rs 287 | Target: Rs 335
    The company is focused on capital efficiency, asset sweating, controlled capex spending, healthy free-cash flow generation, and deleveraging the balance sheet. With a debt reduction, the return on capital employed is seen at 13%
    by FY24.

    Healthcare Global Enterprises
    LTP: Rs 295 | Target: Rs 345
    De-leveraging the balance sheet and reducing losses across new centres have substantially eased legacy overhangs.

    IDBI CAPITAL

    Avenue Supermarts
    LTP: Rs 4,165 | Target: Rs 5,248
    The firm expects a better revenue mix from modern large-sized stores, going forward. It has forecast revenue to grow 35% and profit after tax to grow at a CAGR of 44% over FY22-24.

    Blue Dart Express
    LTP: Rs 8,500 | Target: Rs 11,500
    The company claims to have increased the pin-code services to cater to 98% of India’s business needs. The stock is trading at a PE ratio of 45 times FY23 Bloomberg earnings per share estimates which looks attractive.

    Kolte-Patil Developers
    LTP: Rs 372 | TP: Rs 381
    The company is tied up with institutions such as JPMorgan, KKR, Portman Holdings, ASK Capital, Motilal Oswal, ICICI Ventures, and Planet Smart City, which has benefitted the company’s growth trajectory, internal processes, and corporate governance practices

    IIFL SECURITIES

    ICICI Bank
    LTP: Rs 893 | Target: Rs 980
    The bank reported a broadbased loan growth. Overall loan growth improved to 17% YoY in FY22 from 14% in FY21. While this was driven by the retail and SME segments, with a 20%/33% growth, respectively.

    JB Chemicals
    LTP: Rs 1,910 | Target: Rs 2,380
    With JB’s cardiac segment growing at 20% plus, acute brands making in-roads in tier-2 and tier-3 markets, and robust traction in newer therapies like respiratory, paediatrics, and diabetes, JB is well-placed to deliver 15-16% organic CAGR in India sales over FY22-25.

    Aptus Value Housing
    LTP: Rs 318 | Target: Rs 357
    A strong presence in the underserviced and expanding affordable housing finance segment, the difficult-to assess self-employed segment, impeccable asset quality, superior profitability, and strong capitalisation would
    ensure that premium valuations sustain ahead.

    JM FINANCIAL SERVICES

    Titan Company
    LTP: Rs 2,646 | Target: Rs 3,100
    Focus on in-house brands, domestic sourcing, and channel mix is further improving the margin outlook for the company. The upcoming festive and wedding season should see pent-up demand supporting aggressive growth expectations from all three verticals.

    Deepak Nitrite
    LTP: Rs 2,262 | Target: Rs 2,730
    The company continues to be debt free with a sizeable net worth of Rs 3,573 crore on a consolidated basis. This will help to leverage the balance sheet for future expansion activities.

    Metro Brands
    LTP: Rs 899 | Target: Rs 1,070
    The recent shift of consumer behaviour towards footwear, now considered a fashion statement rather than a value purchase a few years ago, has led to increased premiumisation of products and improved store level unit economics across the sector, leading to the re-rating of the sector.


    MOTILAL OSWAL FINANCIAL SERVICES

    IndusInd Bank
    LTP: Rs 1,218 | Target: Rs 1,450
    Bank’s business growth is likely to accelerate as key businesses, viz., vehicle and microfinance recover. The brokerage expects loan and profit CAGR of 18% and 40% over FY22-24.

    CAMS
    LTP: Rs 2,562 | Target: Rs 3,000
    CAMS is a market leader with a 70% share in India’s mutual fund registrar and transfer agent (RTA) industry.
    Mutual fund and non-mutual fund businesses to register an FY22-25 revenue CAGR of 13% and 20%, with a
    15% CAGR in profits.

    Lemon Tree
    LTP: Rs 86 | Target: Rs 110
    Lemon Tree is in a sweet spot with business travel picking up, as 86% of its rooms are located in business
    destinations

    PRABHUDAS LILLADHER

    Bharti Airtel
    LTP: Rs 783 | Target: Rs 1,032
    Bharti’s return on equity is to improve to 22.1% for FY25 from 6.9% in FY22. We expect a free cash flow of Rs 39,800 crore for FY25 with a reduction in net debt to Rs 54,800 cr.

    Ashok Leyland
    LTP: Rs 147 | Target: Rs 200
    Multiple price hikes, a positive demand outlook, and softening raw material costs could lead to margin expansion at Ashok Leyland.

    Jubilant Ingrevia
    LTP: Rs 543 | Target: Rs 860
    Co's vertical integration business model enables global leadership, while specialty chemicals lead earnings growth aided by capital allocation.

    RELIGARE BROKING

    HCL Technologies
    LTP: Rs 995 | Target: Rs 1,333
    The firm is positive on long-term growth prospects as it would be driven by a strong order book across verticals, continuous demand for a service business, and robust digital capabilities. The stock is trading at a comfortable valuation.

    United Spirits
    LTP: Rs 829 | Target: Rs 1,093
    Religare likes United Spirits in this segment, given the positive industry growth prospects and the company’s tie-up with global giant Diageo, constant focus on premiumisation and renovation.

    Nippon Life India Asset Management
    LTP: Rs 266 | Target: Rs 331
    NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book, and strong presence in B-30 cities augments growth prospects well.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in